Where does this 160 multiplier come from?

NEW -> Contingent Buyer Assistance Program
I think those numbers are reasonable and I do agree that condo asking prices are still 15-25% too high. Pricing on SFR are even more out-of-whack, maybe 20-35% too high. Course, no one can predict with certainty how low prices will drop in the next couple of years.
 
I know this is a broken record, but it's damn near impossible to guess housing prices without forecasting interest rates. Rent rates are a slow-changing dimension, and one must triangulate availability of financing with the value of the utility (bigmoney, hats off to you for this eloquent statement).





The "forced savings account" is indeed an x-factor as one must forecast an unknown, future value -- it can't be discounted but is still hard to quantify, so I can see both IR and Dr's dilemmas.





IR, in the end, there is still something deep inside you that loathes renting. It may be waaay deep down, but it's there. And the owner in you is destined to come out once the correction is complete. There is value in ownership that transcends the utilitarian rationale that is so pervasive on this blog.
 
<p>Everyone here make a donation to IR housing fund and end all the IR's miseries. He can kiss his apartment good bye and change his name to IRHmowner.</p>
 
<em>"IR, in the end, there is still something deep inside you that loathes renting. It may be waaay deep down, but it's there. And the owner in you is destined to come out once the correction is complete. There is value in ownership that transcends the utilitarian rationale that is so pervasive on this blog."</em>





I am not a proponent of lifelong renting. I have enjoyed the mobility, but there is an intangible, emotional factor about owning that makes it very compelling.





I used to work for a homebuilding in Florida doing their land development work. I designed and built my own house with some help from our building department. Having been so intimately involved in every aspect of the project, I had a strong attachment to the property. In the end, I let it go (as part of my spiritual practice.) It was actually liberating to be free of the attachment, but I also know the joys of home ownership.





I will buy when the time is right. When I can save money over renting and continue to live a stress-free life without worries about my payments or loan terms, I will own again. Owning a house should be less stressful than renting because you know your new "rent" -- the rent on money -- should no longer increase. This is why I really do not like any terms other than fixed-rate mortgages, and it is one of the main reasons I never took on exotic financing to participate in the madness.
 
just a reminder...





<img src="http://piggington.com/images/primer/ocpricetoincome.gif" alt="" />





Houses are still overpriced no matter what metric you use.
 
<em>"Hehe, I bet if IR got a $1 million windfall tomorrow he would still rent for the next couple of years."</em>





I keep telling my wife, "If I die, you better not waste that insurance settlement on an overpriced home or I will come back and haunt you."
 
You must log in or register to reply here.
Back
Top